PROCEEDS OF CRIME

EACC seeks orders to recover Sh233.4m from senior ministry official

The amount was acquired through companies owned by wife, son and himself.

In Summary

• The supply chain director's deceased wife, his son and himself are listed as directors of the companies awarded tenders by the ministries he worked under.

• The supply chain director attempted to conceal ownership of one of the companies by transferring his shares and signing mandate.

EACC offices at Integrity Centre, Nairobi.
EACC offices at Integrity Centre, Nairobi.
Image: FILE

The Ethics and Anti-Corruption Commission has moved to court seeking to recover over Sh233 million from a senior supplies chains director at the Ministry of Transport.

In documents filed in court, the commission claims David Kinyae Isika fraudulently acquired Sh233,486,767 in tenders awarded to companies owned by his son, wife and himself by the ministries he worked under. 

The tenders were awarded to three companies by the State Department for Housing and Urban Development under the ministry of Transport, Infrastructure, Housing and Urban development and Public Works and the Nairobi Metropolitan Development within the Ministry of Lands, Housing and Urban Development.

EACC claims Kinyae worked in various capacities at the ministries including as senior deputy director, supply chain management between 2014 and 2021.

"Being a public officer, Kinyae knowingly held private interest in the transactions by companies with the ministries he worked with which private interest was in conflict with his public office," EACC said. 

In documents before court, EACC claimed Wanga-Tech General Enterprises Limited received contracts amounting to Sh75,877,074.35, Davinka Suppliers and General Merchants Limited got Sh102,175,003 while Bruce Isika Kinyae T/A Brycen Smart Innovations received Sh55,434,690 worth of contracts.

The commission said its investigations found that Kinyae is listed as one of the directors and shareholders of Davinka Suppliers up to April 21, 2021 alongside his nephew, Urbanus Kioko Mbithi, and close associates named Stanley Musembi and Peter Wambugu.

His wife, Eunice Wangari Wambugu (deceased) is listed as a director and shareholder of Wanga- Tech General Enterprises Limited alongside her sister and Kinyae's sister in-law, Joyce Wairimu Wambugu.

His son, Bruce Isika Kinyae, is listed as the sole director of Brycen Smart Innovations.

"Kinyae abused his position of trust by participating in the award of tenders to companies associated with him," the anti-graft body notes in the affidavit filed through advocate Culent Lunyolo.

In a bid to disguise ownership of Davinka Suppliers and General Merchants Ltd, EACC claimed investigations found that Kinyae transferred his shares/directorship as well as signing mandates.

The commission further claimed its investigations found that Kinyae willfully failed to comply with laws relating to procurement processes by failing to convene Inspection and Acceptance Committee meetings.

"He forged Inspection and Acceptance reports by superimposing signatures of other members of the Committee," the commission claimed.

EACC has asked court to recover all the funds held in various bank accounts including at the Cooperative Bank.

"Despite having been served with demand and notice of intention to sue, the defendants have failed and/or refused to make good the plaintiff’s claim," the commission said.

EACC is mandated by Section 11(1)(j) of the EACC Act to institute and conduct proceedings in Court for purposes of recovering or protecting public property.

The law also permits the commission to freeze or confiscate proceeds of corruption or related to corruption or payment of compensation or other punitive and disciplinary measures.


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